Renewables capacity boosted to help fuel electric cars
Electric cars will be supported by renewable energy
The UK government is to allow more renewable energy projects to receive subsidies – in a bid to meet increasing demand for electricity.
Doubling the capacity of renewable energy from 5.8 gigawatts (GW) to 12 GW could be enough to power 20 million electric cars on Britain’s roads in a year, the government said.
The increase will help the government deliver on Prime Minister Boris Johnson’s plan to cut emissions.
Floating offshore wind projects will qualify for subsidy for the first time, and solar and onshore wind projects will be able to bid for the first time since 2015, as announced in March.
The subsidies are provided through the government’s Contracts-for-Difference (CfD) scheme which guarantees a minimum price at which suppliers can sell electricity.
Producers bid to sell power at fixed prices and over a fixed period, generally 15 years. If the wholesale price for power is below the contract price, the government pays the difference. But if the power price is above the contract price, then the owner pays back the difference.
The next allocation round for renewable energy technologies such as offshore wind will open late next year.
Former coal-burning power stations that have been converted to biomass generation will be excluded from future CfD rounds, the government added.